Tag: Canadian economy

IMPACT OF HUGE BANK OF CANADA INTEREST RATE JOLTS ON CANADIAN ECONOMY: EXPLORING EFFECTS ON CONSUMERS AND BUSINESSES

Post author By Brandon Smith
Post date July 17, 2023

bank of canada interest rate

Bank of Canada interest rate: Introduction

Step right in and welcome to Brandon’s Blog, where this week I shall delve deep into the intricate nuances of the Bank of Canada interest rate policy, uncovering its profound implications for the Canadian populace and enterprises. Witnessing the recent implementation of an interest rate hike by the Bank of Canada, it becomes paramount to comprehend the reasoning behind this pivotal decision and discern its multifaceted repercussions across diverse sectors of the Canadian economy.

Comprehending the influence of rates of interest on the Canadian economy is important for individuals and companies alike. The Bank of Canada plays a pivotal role in setting interest rates in Canada. In this way, the Bank of Canada interest rate policy has a straight effect on borrowing rates as well as, consequently, spending and also investment choices. For consumers, adjustments in the rate of interest can impact mortgages, credit card rates of interest, as well as the cost of all other loan products.

Businesses, on the other hand, factor in the rate of interest they pay in their decision-making, especially in financial investment strategies as well as accessing resources. Therefore, a comprehensive understanding of the Bank of Canada rate of interest policy as well as its consequences is essential for making enlightened financial decisions in Canada’s dynamic financial atmosphere.

Through a professional and all-encompassing perspective, albeit from someone who is not an economist, we shall embark upon a journey to explore the wide-ranging effects stemming from the continuing Bank of Canada aggressive interest rate hikes, shining a beacon of understanding upon the potential trials and prospects that await us. Will there be at least one more additional rate hike in 2023? The experts are mixed in their forecasting. After the 10th interest rate hike in April 2022, analysts felt the Bank of Canada would take a rest. They did this for exactly 1 month and then continued raising rates in June and July. Accompany me as we skillfully navigate this intricate landscape and the extensive ramifications it begets.

Overview of Bank of Canada

The central bank of Canada is none other than the Bank of Canada, entrusted with the job of supervising the economic as well as financial well-being of the country. Developed back in 1934, this institution has genuinely developed into an important player in shaping economic plans, handling the country’s currency as well as rising cost of living levels, and supervising the security of the Canadian financial system.

Operating under a Board of Directors, which includes the Governor and Deputy Governors, this management framework holds the obligation of making certain that the objectives of the organization are duly attained. With a solid commitment to transparency and responsibility, the Bank of Canada constantly publishes reports as well as financial statements to make sure that the general public is well-informed regarding its actions as well as the choices it makes.

Its function in the Canadian economy is indisputably vital, and it continues to satisfy a considerable duty in directing the security, development, as well as prosperity of the Canadian economic climate.

bank of canada interest rate

Some history and definitions of the Bank of Canada’s interest rates

There are some basic definitions that are important to understand when discussing the Bank of Canada interest rate policy. Here they are:

Policy rate: The policy interest rate set by the Bank of Canada plays an important role in shaping the primary monetary factors within the Canadian economy. Meeting analysts expectations, following the recent 25-basis-point-rate hike in this month’s rate announcement, the current policy rate stands at 5%.
Bank rate: Sometimes the policy rate is also referred to as the bank rate.
Benchmark interest rate: Another name for bank rate or policy rate is the benchmark rate.
Overnight rate: The overnight rate, which signifies the price at which financial institutions extend funding to each other, holds immense relevance in the general performance of the financial system. The overnight rate plays a vital role in identifying the loan costs for banks and eventually, for consumers and companies. By very closely monitoring variations in the overnight rate, banks have the capability to adjust their lending methods, ensuring the security and also the performance of the financial market.
Prime lending rate: The prime interest rate, also referred to as the “prime rate,” is the rate of interest commercial banks charge their most credit-worthy clients. It is a baseline rate whereupon all floating rate loans are based (for example, prime + 3%). The prime rate is established by financial institutions in a competitive, or some more cynical may say lockstep, fashion. The prime rate in Canada is presently 7.20% after the last rate increase.
Deposit rate: The deposit price is the rate of interest paid by banks on cash deposits of account owners.

Understanding the purpose of Bank of Canada interest rate policy

Explanation of what the Bank of Canada interest rate is

The Bank of Canada interest rate policy is one of the indispensable monetary policy tools employed by the Bank of Canada to govern the surging cost of living and bolster the economy. The interest rate determined by the Bank of Canada impacts the borrowing expenses for all debtors across the nation.

When the Bank of Canada heightens or diminishes its principal interest rate, it influences the rates at which Canadians can obtain funds, such as residential mortgages, auto loans, and lines of credit. It also affects the return that banks will provide when you invest with them, in addition to how the stock market will respond to its perception of the future trajectory of the Bank of Canada interest rate. Grasping this is crucial to comprehending its ramifications on the Canadian economy.

Factors influencing changes in the Bank of Canada interest rate

The Bank of Canada interest rate is a vital monetary policy tool used to regulate the nation’s economy. A number of elements affect changes in the rate of interest, such as the inflation rate, the expansion or contraction of the economy, employment rates, and international economic issues. The Bank of Canada carefully checks these indicators to analyze the state of the economy and choose what interest rate adjustments to make, if any.

Elements such as high inflation, a strong economy, and a reduced unemployment rate might suggest a need for higher interest rates to suppress the economy from overheating. Conversely, weak economic conditions might lead to lowering the central bank rate to boost borrowing as well as investment. These elements play a crucial function in establishing what the central bank pegs the Bank of Canada interest rate at which will affect consumers’ and businesses’ behaviour.

The process of setting and adjusting the Bank of Canada interest rate

The Bank of Canada holds a pivotal position in overseeing the nation’s economy by means of its policy on interest rates. The bank consistently examines and modifies interest rates contingent upon diverse economic factors, including inflation, employment, and GDP expansion. This undertaking encompasses comprehensive scrutiny and evaluation of existing economic circumstances, both within the country and across the globe.

Right now the Bank of Canada seems to be on an aggressive campaign to fight inflation, with the sole aim of wrestling it down to its inflation-control target of annual inflation of 2% per annum. The problem is that some of the biggest drivers currently fuelling inflation, such as government spending, energy and food prices will not react to the Bank of Canada’s actions. It has also been reported that the tightening of the Canadian economy is larger than the US Fed’s actions in the US when comparing the relative size of the two economies.

Higher prices and staff shortages are leading to wage pressures on all businesses. Ironically, Statistics Canada reported that one of the biggest factors driving inflation for the 12-month period ending April 2023 was the cost of mortgage interest! Anyone who did not change their variable rate mortgage into a fixed rate mortgage when rates were super low knows this only too well.

Once the decision is made, the bank communicates it to financial institutions, which in turn affects borrowing rates for consumers and businesses. The Bank of Canada’s interest rate policy is implemented with the aim of maintaining price stability, fostering economic growth, and ensuring financial stability in Canada.

bank of canada interest rate

Bank of Canada interest rate effect on consumers

Impact of interest rate changes on borrowing costs (mortgages, loans, credit cards)

The Bank of Canada interest rate planning has major implications for consumers across Canada. One cannot ignore the effect that revolves around the ramifications of all borrowing costs. When the central bank rate experiences an upswing, borrowing costs escalate at all financial institutions, potentially posing challenges for individuals seeking mortgages or requiring other personal loans.

Moreover, increased interest rates lead to higher monthly payments on variable-rate financial obligations. This is designed to instill an added sense of prudence among consumers regarding their spending habits, simultaneously fostering an inclination towards savings. Grasping the consequences of interest rate fluctuations on loan expenses assumes paramount importance in individuals’ financial strategizing and decision-making.

Influence on consumer spending and saving habits

The Bank of Canada interest rate policy has a significant impact on consumer spending and also saving behaviours. When interest rates climb, borrowing costs increase, affecting the cost of all mortgages and other personal loans. This often results in a decline in consumer spending as people try to conserve cash. Conversely, as we have seen over the last many years when interest rates are low, borrowing ends up being even more inexpensive, motivating consumers to spend and stimulate economic growth. So, any kind of adjustments to interest rates by the Bank of Canada directly influences consumers to act in a way the Bank of Canada feels is best for the Canadian economy.

Effects on the housing market and affordability

The Bank of Canada’s policy regarding interest rates holds significant sway over the housing market. When the interest rate rises, the expense of mortgage financing also escalates, rendering homeownership more costly. This circumstance has the potential to trigger a downturn in the housing market as the demand diminishes. Furthermore, when it comes to mortgage renewals, the augmented interest expense might pose financial challenges for certain individuals.

Conversely, when the interest rates are decreased, housing becomes more affordable, thereby stimulating the housing market. Consequently, fluctuations in the Bank of Canada’s interest rate assume a pivotal role in influencing the dynamics of the real estate market in Canada.

The overall effect on Canadians

The Bank of Canada’s policy on interest rates has significant implications for personal finances, including debt management, for Canadian consumers. As rates of interest change, as stated above, borrowing costs change along with the Canadian economy. The overall financial wellness of Canadians can also change.

bank of canada interest rate

Bank of Canada interest rate: Effect on businesses

Influence on borrowing costs for businesses

The Bank of Canada interest rate policy has a significant impact on the borrowing costs for businesses in Canada, inevitably affecting their financial investment choices which affects their growth. When the rates of interest are reduced, companies can take advantage of reduced borrowing expenses to make new business investments, aimed at expanding their operations.

On the other hand, when the interest rates are higher, borrowing ends up being more costly, which discourages companies from making those new investments thereby putting their activities on hold or even contracting business operations. Consequently, the Bank of Canada’s monetary policy moves plays a crucial function in how the economic landscape changes for companies, influencing their growth prospects, and general financial stability.

Effects on employment and wages

The Bank of Canada interest rate policy plays an essential role in shaping both employment rates and the wage landscape across Canada. A rise in the rate of interest raises borrowing costs for companies, resulting in decreased financial investments. This can have an influence on employment rates as businesses won’t hire more people as growth plans are put on hold.

In fact, companies may even downsize their workforce as other input costs increase. This downsizing can also affect worker productivity as businesses try to do the same or more with fewer people. For that reason, it is necessary for businesses to carefully keep an eye on the Bank of Canada’s interest rate choices as they navigate the intricacies of maintaining their workforce and offering fair wages in an ever-changing financial climate.

Implications for business growth and economic stability

The Bank of Canada’s central interest rate policy plays an essential function in the Canadian economy, with significant effects on businesses. When the interest rates are raised, borrowing costs for businesses climb, impacting their investment decisions and ultimately their growth. This, consequently, can affect profitability and also employment opportunities, as businesses may end up being more cautious in their investing and workforce-level choices.

Alternatively, a decline in the rate of interest might incentivize borrowing and urge companies to spend and invest. Eventually, the decisions taken by the Bank of Canada interest rate policy will shape the trajectory of business investments and spending, thereby shaping the Canadian economy.

Relationship between interest rates and economic growth

The Bank of Canada’s interest rate policy plays a crucial role in shaping the overall Canadian economy. The relationship between interest rates and economic growth cannot be overlooked. When the central bank adjusts interest rates, it directly impacts borrowing costs for consumers and businesses alike. By raising interest rates, the Bank aims to restrain inflationary pressures and promote sustainable economic growth. On the other hand, lowering interest rates can stimulate spending and investment, fueling economic expansion. Thus, understanding the connection between interest rates and economic growth helps policymakers and businesses make informed decisions to foster a stable and prosperous Canadian economy.

Influence on inflation and consumer prices

The Bank of Canada, being Canada’s central banker, exerts a substantial influence on the inflationary trends prevailing within the Canadian economy. When the rates of interest experience a decline, borrowing costs diminish, thereby encouraging increased consumer spending and business investments. This surge in demand can eventually trigger a corresponding rise in costs and contribute to inflationary pressures.

On the other hand, when the rates of interest undergo an upswing, borrowing costs escalate, which in turn curtails spending and investment activities. Such measures aid in regulating the mounting cost of living by constraining demand and mitigating general price hikes. Therefore, the choices made by the Bank of Canada interest rate policy play a critical role in upholding price stability and fostering a well-balanced Canadian economy.

Implications for monetary policy and government regulations

Changes in interest rates directly influence the borrowing costs of both companies and consumers by influencing their choices regarding spending and financial investments. Higher interest rates are currently being used as a financial policy device focused on curbing inflationary pressures in the Canadian economy.

In addition, interest rate adjustments can also shape government policies, as policymakers aim to cultivate a financial atmosphere that provides the world with the message that the Canadian economy is stable. The Bank of Canada applies its interest rate choices, thinking about the prospective repercussions for both monetary policy as well as federal government guidelines.

Strategies for Consumers and Businesses

Tips and advice for consumers managing finances in a changing interest rate environment

In a constantly shifting landscape of interest rates, it becomes crucial for individuals to skillfully navigate their finances. Here, I present some indispensable pointers and recommendations to assist you in maneuvering through these Bank of Canada interest rate fluctuations:

Stay in the know: Keep yourself informed about the Bank of Canada interest rate decisions, along with the projections offered through the media regarding their probable direction. Comprehend how these developments might influence your financial circumstances.
Strategize your budget wisely: In the face of interest rate hikes, it becomes imperative to reevaluate your budgetary plan. Concentrate on essential expenditures and contemplate trimming down on non-essential ones.
Consider refinancing or renegotiating your loans: Seize the opportunity of a lower interest rate whenever it arises by refinancing or renegotiating your loans, potentially leading to reduced monthly payments.
Save with purpose: Deposit surplus funds into high-yield interest-bearing accounts or investments that offer superior returns, as a countermeasure against possible increments in loan rates.
Seek expert guidance: Consult financial advisors who can furnish customized advice tailored to your specific economic objectives and existing financial situation.

By implementing these strategies, consumers can effectively manage their finances within a dynamic interest rate environment, thereby mitigating any potential negative repercussions.

Recommended strategies for businesses to navigate fluctuating interest rates

Fluctuating rates of interest can test the nerve of even the most experienced business owner. To alleviate the impact of changing rates, it is essential to take on particular strategies. Primarily, businesses ought to think about re-financing their present loans to lock into lower fixed-rate loans if it looks like rates are going to rise. Additionally, they should focus on efficiently managing their cash flow by focusing on payment strategies with their suppliers. Don’t be shy about asking for longer payment terms, if possible.

One more very effective method is to diversify their financing sources by exploring alternative financing choices such as equity capital or longer-term debt. Also, it would be most helpful to have more than one lender who deals with you and looks favourably at your business. That way if one lender starts to tighten up the credit line, you have an alternative lender already that you can go to.

In addition, businesses ought to regularly check the trends in interest rates and make informed decisions and choices. By carrying out these carefully crafted tactics, businesses can expertly navigate the consequences of ever-changing rates of interest on their business for financial stability.

Overview of available tools and resources to understand and plan for interest rate changes

Acquiring a general understanding and also properly getting ready for changes in interest rates are critical elements for both consumers as well as companies. To expertly navigate this intricate area, a variety of tools as well as resources are conveniently offered. Banks provide online calculators and interesting short articles, working as useful help for consumers to grasp the influence of rate activities on their home loans, general finances, as well as financial investments.

Additionally, federal government websites and various industry associations equip people with indispensable details relating to interest rates, predictions about interest rate movements and issues relating to the Canadian economy. When it comes to businesses, looking for assistance from experienced consultants and leveraging specialized software programs can assess and highlight critical data in looking at prospective dangers as well as opportunities from the ever-changing interest rates.

By harnessing the power of these tools and resources, individuals and businesses can make sensible choices and flexibly change their economic plans as required.

bank of canada interest rate

Bank of Canada interest rate policy: Summary

The Bank of Canada interest rate policy is a major tool in directing the Canadian economic climate. The recent rates of interest hikes have had significant ramifications for both consumers and also businesses. It is important for consumers and businesses to stay informed about the Bank of Canada’s interest rate decisions to make informed financial decisions and adapt accordingly.

The climb in interest rates has resulted in higher borrowing costs for everyone. Along with inflation, many Canadians are having to make hard choices and household debt is climbing. To a certain extent, it seems like the Bank of Canada’s aggressive action shows that it is disinterested in the plight of many Canadians finding it harder and harder to make ends meet.

I hope you enjoyed this Bank of Canada interest rate Brandon’s Blog. Problems with making ends meet are a growing concern in Canada, affecting individuals of all ages and income levels.

Creating a solid financial plan can be the key to unlocking a brighter and more prosperous future. By taking control of your finances, you can prioritize your expenses, set clear financial goals, and build a strong foundation for your dreams to come true. With the right mindset and approach, financial planning can empower you to regain control, eliminate this issue as a source of stress in your life and find peace of mind.

Individuals must take proactive measures to address financial difficulties and promptly seek assistance when necessary. It is crucial to recognize that financial stress is a prevalent concern and seeking help is a demonstration of fortitude, rather than vulnerability. Should you encounter challenges in managing your finances and find yourself burdened by stress, do not delay in pursuing aid.

Revenue and cash flow shortages are critical issues facing people, entrepreneurs and their companies and businesses that are in financial distress. Are you now worried about just how you or your business are going to survive? Are you worried about what your fiduciary obligations are and not sure if the decisions you are about to make are the correct ones to avoid personal liability? Those concerns are obviously on your mind.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own and it does not mean that you are a bad person. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team uses innovative and cutting-edge methodologies, to adeptly navigate you through the intricacies of your financial challenges, ensuring a resolution to your debt-related predicaments without resorting to the rigours of the bankruptcy process. We can get you debt relief now!

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a Trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

The Ira Smith Trustee & Receiver Inc. team understands that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

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Brandon Blog Post

MORTGAGE ISSUES BREWING: CANADIANS ARE SERIOUSLY FALLING BEHIND ON DEBT

Post author By Brandon Smith
Post date May 15, 2023

Mortgage issues: Introduction

As per the latest findings from the Royal Bank of Canada (RBC or RBC Economics), a significant proportion of Canadians are currently grappling with debt payments, thereby heightening the risk of mortgage default in the future. The report reveals that the average Canadian owes $1.77 in debt for every dollar of disposable income, a trend that has been steadily increasing over recent years. This development is particularly concerning given the rising interest rates, which are exacerbating the difficulty of maintaining timely payments.

This Brandon’s Blog will explore the RBC report, the truth about household debt, including mortgage debt, in Canada, whether or not we are already in trouble and its implications for Canadian households.

The impact of rising interest rates on mortgage and other debt payments

The RBC report clarifies the negative impact of boosting the rate of interest on debt payments for Canadians. With the way we have seen the rate of interest growing, numerous Canadians are finding it significantly testing to handle their debt payments, specifically those with a variable-rate mortgage or loan product taken out at interest rates at pre-pandemic levels or credit card debt.

Interest rates have risen significantly, with the Bank of Canada’s Target Overnight Rate going from 0.5% in March 2022 to holding at 4.5% since January of this year. Anyone faced with renewing their mortgage is going to be in for a bit of sticker shock. The report also highlights a concerning pattern where a substantial number of Canadians are unprepared to handle the prospective fallout of rising interest rates on their ability to meet their financial obligations.

This RBC report highlights the expanding degree of debt among Canadians, which could potentially cause mortgage issues down the line. As more Canadians battle to keep up with their debt payments, RBC’s experience states that it is most likely that they might start missing mortgage payments. This could lead to serious consequences, such as the loss of their home or even bankruptcy. What’s even more, the report reveals that numerous Canadians are blissfully unaware of the possible dangers related to lugging around high levels of debt.

Understanding Household Debt in Canada

In order to attain a comprehensive comprehension of the ramifications of Canadian household debt, it is imperative to precisely define it. Household debt encompasses the aggregate sum of all financial obligations owed by Canadian households, including home mortgages, credit cards, lines of credit, and vehicle loans. Data released by the Bank of Canada indicate that the customary household debt-to-income ratio has been consistently escalating over the past few years, indicating a trend that is no longer just a blip.

This trend signifies that Canadians are taking on increasingly greater financial obligations in relation to their income. Coupled with the effects of inflation, it is apparent that, on average, Canadian household income is insufficient to meet the customary familial expenditures, resulting in families incurring more debt to maintain their standard of living.

Substantial household debt poses several possible risks to the Canadian economic climate. First of all, it can cause economic instability for Canadian households as they endeavour to satisfy their financial obligations. Second of all, increased degrees of financial obligation may result in a reduction in consumer spending, therefore negatively impacting the overall economy. Finally, households with elevated debt levels will likely be extra prone to default as the rate of interest hikes happens, potentially causing a cascade of defaults throughout the Canadian economy.

Canadians expect signs of trouble in the Canadian economy

Recent data indicates prospective problems surrounding Canadian household debt. In a survey of Canadians carried out by the Bank of Canada between January 27 and February 16, 2023, with follow-up interviews in March 2023, numerous key findings were uncovered.

The key findings were:

Assumptions for the rising cost of living in the coming 1 to 2 years have declined but continue to be dramatically greater than in the pre-COVID-19 period.
While consumers have reduced their price increase expectations for certain goods, such as commodities, inflationary assumptions for services such as rent stay raised.
A majority of consumers believe that the Bank of Canada faces obstacles in successfully lowering inflation because of high government spending and also ongoing supply chain disruptions. However, many remain hopeful that supply chain issues will be fixed within the next two years, resulting in reduced product prices influenced by the disruptions.
Alternatively, those that watch high federal government spending as a relentless inflationary force expect continued interest rate stress in the long term.
The present economic environment is characterized by elevated inflation and also a higher pattern of interest rates, which has actually resulted in installing strain on Canadians, especially those that are making monthly mortgage payments. Consumers are spending less on non-essential services, including leisure travel, eating in restaurants, as well as various other recreational activities.
A considerable majority of Canadians view an economic downturn to be one of the most potential end results for the Canadian economy within the following year. Nonetheless, many people continue to be uncertain regarding the direction of the economy, the labour market and unemployment rates. Such uncertainty has actually caused a tendency amongst consumers to reduce spending and increase savings as a preventative measure.
In spite of economic obscurity, workers show a favourable outlook on the job market, with several certain they could find new employment opportunities, especially those who are discontent with their present jobs. Private sector wage increase expectations are near an all-time high among employees.
Nonetheless, wage growth is expected to fall short of the rising cost of living, with most workers predicting their wages or salary will not equal current inflationary trends in the coming year.

Principal reasons for mortgage issues in Canada

Amidst the prevailing economic conditions, numerous homeowners are facing considerable difficulty in maintaining the escalating expenses associated with owning a home. Consequently, there is an anticipated surge in the number of defaulted mortgage payments in the forthcoming months. This trend is a source of apprehension for both homeowners and lenders.

As per the RBC Economics report, the principal reasons for mortgage-related issues in Canada are:

The rising cost of homeownership includes rising property taxes, insurance costs, and maintenance expenses.
Job loss or reduced income.
Reduced economic growth.
High household debt.
Increasing interest rates. This is especially true for homeowners with variable-rate mortgages, as their payments can fluctuate over time.
Unanticipated expenditures and low or no savings or emergency funds. Some homeowners may have taken on too much debt or purchased a home that was too expensive for their budget. In these cases, failed mortgage payments are almost inevitable.

The RBC report sustains the findings of the Bank of Canada study. It mentions that this might be due to a mix of elements, including climbing living expenses, stationary wage growth, and the high cost of housing. The repercussions of this could be extreme, affecting not only specific homeowners and their personal finances but the entire Canadian economic situation.

RBC states that it is critical that lenders, regulators, as well as policymakers, interact to address this problem effectively. Financial education, government programs and support for those dealing with financial debt can help protect against mortgage issues and defaults.

Consequences of mortgage issues in Canada

Failed mortgage payments can have significant consequences for both homeowners and also for mortgagees. For homeowners, missed payments can result in the power of sale or foreclosure process. This results in the loss of their house.

Potential lending institutions scrutinize credit history and also credit score prior to approving loan or mortgage applications. Uniformity in making payments is essential as it contributes to keeping a healthy credit rating. So being delinquent on debt and home mortgage payments and especially the loss of your house has a considerable unfavourable effect on your credit score and your capacity to get loans in the future.

The financial and mental stress of these mortgage issues cannot be overemphasized. It is vital that Canadians take positive steps to deal with their debt properly. The RBC report stresses the significance of looking for guidance and assistance from trustworthy financial specialists to help you be able to deal proactively with your debt problems before it is too late. By following this guidance, Canadians can protect their financial well-being and also avoid possible home mortgage problems in the future.

Delinquent mortgage and loan repayments can result in economic losses for lenders. Due to their reliance on periodic payments to sustain their operations, any missed payments can cause significant disruptions to their cash flow. This is particularly true for smaller lenders with limited resources as compared to larger organizations. When a substantial portion of a lender’s portfolio consists of delinquent and non-performing loans and mortgages, it can lead to a cessation of operations.

Coping with household debt and mortgage Issues: What Can Homeowners Do?

The RBC Economics report underscores the significance of proactive debt management by Canadians. While elevated levels of household debt may trigger apprehension, there are measures that individuals can undertake to mitigate the risk of financial ruin. One crucial approach is to look carefully at your personal finances and devise a budgetary plan and adhere to it. This can assist households in identifying superfluous expenditures and making necessary adjustments.

Furthermore, households ought to prioritize the repayment of high-interest non-mortgage debts such as credit cards. CTV News reported that non-mortgage debt is up by 5.4% when comparing the fourth quarter of 2022 to the same time in 2021. Seeking the guidance of a financial expert in developing a debt management strategy can also prove advantageous.

In the event of mortgage payment difficulties, there are several prudent measures that homeowners may take to forestall losing their homes. Firstly, contacting the lender and providing details of the financial predicament may yield positive outcomes. Numerous lenders extend hardship programs that facilitate a reduction in monthly payments or an interim suspension of payments.

In the event that you have an insurmountable challenge of making home mortgage payments and the looming threat of losing your home, it may be a good idea to very carefully consider the option of selling your residential property. By doing so, you can properly avoid the damaging end results of defaulting and losing your home and ultimately embark on a clean slate of living in a more affordable home.

All of these recommendations can be found in my May 1, 2023, Brandon’s Blog “MAXED OUT CREDIT? YOU NEED TO KNOW HOW TO INCREASE CREDIT SCORE: OUR 13 INTRIGUING TIPS TO IMPROVE YOUR CREDIT SCORE”.

However, if things have gotten out of control and your creditors are already pounding at the door, making harassing collection calls and possibly even suing you, you need to take immediate action. Contact me anytime by phone or email.

Mortgage issues: Conclusion

The RBC report has brought to the fore the intensifying concern of Canadians back-pedalling on their debt payments. The scenario is rather disconcerting, specifically given the surge in the rate of interest that pose a formidable challenge for Canadians to stay current with their financial obligations.

In addition, higher interest rates and the price of necessities of life have increased concerns about the surging debt levels amongst Canadians and the possible difficulties that could arise in the home mortgage market in the future. It is imperative that Canadians take aggressive measures to address their financial debt management strategies and appropriately plan for the ramifications of this new higher interest rate environment.

I hope you enjoyed this mortgage issues Brandon’s Blog.

Revenue and cash flow shortages are critical issues facing people, entrepreneurs and their companies and businesses. Are you now worried about just how you or your business are going to survive? Are you worried about what your fiduciary obligations are and not sure if the decisions you are about to make are the correct ones to avoid personal liability? Those concerns are obviously on your mind. Coming out of the pandemic, we are also now worried about the economic effects of inflation and a potential recession.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy proceedings. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

Brandon Blog Post

CANADA RECESSION: 8 ESSENTIAL SMART STEPS TO KEEP YOUR BUSINESS GOING IN A DOWN ECONOMY

Post author By Brandon Smith
Post date July 11, 2022

canada recession

Canada recession: Can you operate a business if there is a recession in Canada?

During slow economic growth and economic downturns in the Canadian economy, companies cut costs and especially labour costs. I wrote about Canadians’ fears of the Canada recession two weeks ago. Job losses go hand in hand with tough times. For many people, gaining new meaningful employment is very tough and sometimes impossible. For those people with dim economic prospects in the Canadian labour market, starting a small business in tough economic times is really their only option.

Despite the challenges a weak economy and the current recession fears may pose, starting a small business can be a rewarding experience with the proper amount of planning. In this Brandon’s Blog, I provide my 8 best tips for either changing parts of your business or starting a small business during tough economic times and maybe even a Canada recession.

How must business owners respond to a Canada recession?

Right now, no economist is prepared to forecast the Canada recession risk. Will it be a mild recession, a severe recession or will we even have one at all? The current and forecasted monetary policy of the Bank of Canada with its overnight rate hikes to its benchmark rate has financial markets, Canadian businesses and Canadian households all on edge. It is not just Canada as the heads of the central banks of all advanced economies reacted to the pandemic the same way and are now all acting in concert with rate hikes in an attempt to curb the now persistent inflation.

We are in somewhat of new territory as this period of time is very different than previous recessions and financial crises. We are experiencing economic shocks due to the COVID-19 pandemic and the shutdown and restarting of the Canadian economy. There is not a lot of either business confidence or consumer confidence in the marketplace right now. The consumer price index is increasing due to rising inflationary pressures and the inflation rate in Canada.

Small business owners need to have a well-crafted business plan, especially during an economic downturn. This is because it can be more difficult to get financing from lenders when money is tight. Therefore, starting a small business during a recession can be challenging. If you want to have success in your business, new or established, you need to put some serious effort into cash forecasting and knowing your bottom line. This means understanding how much money you need to bring in, what your operating costs are, and ideally how to make a profit.

canada recession

How to financially prepare my business for a Canada recession

Here are some methods that can help ensure your business does well during challenging financial times. Whether you’re just starting or need to make some adjustments to your existing company, these pointers can help you survive as well as also grow.

You can even find success at some level during turbulent economic activity. The reasons are as follows:

You may find that there is less competition during this time. This is because most people tend to start businesses when the economy is doing well.
You may find certain things are cheaper, the overhead costs of things that you need for your business to run. Think about working from home or renting a location that has been vacant for a while. Think of used furniture and materials, which you can buy at a discount or maybe even from a bankruptcy sale.
If you service your customers you gain during this time well, your good relationship will be a good reason why they will be more likely to stay in touch with you when the economy improves. This is especially important if you can offer them a more affordable option than the competition.
More mature businesses tend to stifle or prevent innovation during downturns. You can use this time to come up with new ideas that might be missed and give you a better position when you open doors, real or virtual.

The success of your company is based on how well you study the actual domestic demand for your product or service in the marketplace. It is just as important to comprehend what target price you need to reach in order to make sales. Furthermore, you need to understand what sales level you need to hit to both break even and also to be profitable.

Canada recession financing

It’s always an excellent idea to have someone you trust assess your business plan and cash flow forecast before trying to obtain financing. This will help you catch any essential issues you might have missed or inaccurate assumptions you have actually made as it relates to your business and its capital requirements. Some resources you might wish to turn to for help before looking to financial institutions for a loan include:

friends who have their own business;
someone at the bank where you do business with who you have a good relationship; or
your accountant

The Canadian economy could be pushed into a recession by the federal government’s reaction to the COVID-19 pandemic. If you’re considering starting a new business during these challenging times, you need to be very cautious. Your ability to develop a financial backup plan for your business and personal finances if you don’t meet your initial revenue target is more important than your ability to borrow money. It is normal for any new business that you will not be able to draw a salary during the 1st year of your new business.

You should also have a personal cash reserve so you have enough to live on for ideally the first 12 months of a new business. Make sure you budget carefully so you can keep making your most critical payments: rent/mortgage, insurance, utilities, and food. Finally, check your gut and your bank balance to make sure you’re ready to embark on your new adventure.

canada recession

Canada recession: Sell shrewdly

Starting a new business at a time of sharp economic downturn and turbulent economic activity requires creativity and resourcefulness. Marketing is critical to staying ahead of the competition. Make sure your business plan really fleshes out the marketing process: What exactly are you trying to sell? Who is your target customer? How will you price your product or service? What is your business promotion plan?

Dividing your original customer base into smaller pieces or niches is another strategy to allow any business to market more strategically. For example, if you are offering professional services for women, are you able to narrow it down to women in a specific age group, occupation type, or geographic location? Or, can you tier your product offering so that there is a relatively low-cost entry point product to allow new customers to try out your business and to allow you to then move them up to higher-priced and more profitable product offerings?

Can you think of ways to expand your customer base? For example, if you have a business shipping recipes and ingredients on a subscription basis for people to cook their own dinners without having to go do the shopping, could you also offer packaged dinners to customers who just want the convenience of heating and eating?

Canada recession: Ongoing competitive analysis

Be informed of your competitors’ movements in terms of marketing and product design. Are they enhancing the product? Devaluing the price? Utilizing original promotional methods? Knowing your competitors’ standings will help you formulate a unique selling proposition and grow your market.

Think about which segments your competitors are not serving, or which leads they are missing, and then fill that gap.

canada recession

Canada recession: Start small…with a plan to expand

As you start your business, be mindful of both your expectations and expenses. Try to be conservative in your estimates and plans, then adjust as your business grows. Review your business plan periodically and reconsider what is truly necessary to get started. For example, could you open in a smaller or cheaper location? Or, could you avoid the need for physical space by staying virtual?

When you have found the most cost-effective space for your business, think about your staffing needs. Before hiring permanent staff, you could use independent contractors as temporary or part-time workers.

If you are aware of a similar business that is failing, you may be able to find some great people who are willing to be paid less than in a more active market. Offer fewer employee benefits initially and then increase them as your profits grow. You don’t want to offer all sorts of great benefits at first and then find out you can’t afford them later. Taking away benefits is much worse than not having given them in the first place.

Immediate business growth in a challenging economy is unrealistic. An aggressive approach in a Canada recession or a down economy is unwise. You should be looking for sustained business growth over time.

Canada recession: Leverage technology to your advantage

The right tools are essential for business success. Utilizing modern technology can help you to stay organized, connected with customers and effectively market your company. CRM systems help you track your customers’ interests, so you can focus on products and services that best meet their needs.

The latest technology gives entrepreneurs more options for selling online and through multiple channels. You can save on advertising costs by doing email marketing, blogs, podcasts and of course optimizing your website for SEO instead of opting for more expensive electronic or print ads. And when you need inspiration, you can turn to social media and online publications and groups focused on helping entrepreneurs.

canada recession

Canada recession: Your network

Building a strong network is essential for anyone looking to advance their career or grow their business. Getting involved in local business groups and networking events is a great way to meet other like-minded individuals and make valuable connections. Joining professional associations or local clubs and organizations related to your industry is also a great way to expand your network and get your name out there.

Canada recession cost reduction ideas

With inflation pressures causing rising prices, cost reduction needs to be a key element of running your business. A gloomy economy can actually mask some great ways to save money. Creative ideas to reduce your start-up costs include:

Be very careful when making capital investments due to their mid and long-term nature. Leverage the economic situation and negotiate everything. You may be able to get a sharp drop in prices if you can demonstrate that you can afford to pay the lower price in full and on time.
Buying supplies from businesses that are about to go out of business or need to reduce inventory, especially bulky items like electronics and office furniture.
Barter with other business owners to find business alliance possibilities and suggest trading in products or services to offset costs.
Initially, do your own legal, financial and business homework through free online resources.
Compare business credit cards for the best deals.
Find a bank account that meets your small business needs including access to brick-and-mortar and online services as well as attractive rates and incentives.
canada recession

Canada recession key takeaways

Before seeking financing, consult with another business owner or friend to review your business plan. Develop a marketing strategy tailored to your business goals. Start small and expand when you see improvements. Secure your network and find ways to keep costs down by utilizing available technology.

You should begin with small steps and then increase your efforts when you start seeing improvements. Make sure your network is secure and look for ways to reduce costs. Make use of appropriate existing technology.

Although it may be challenging, there are benefits to starting or running a business during an economic downturn. By being thoughtful and strategic about cost-cutting measures while still providing value to customers, you can set your business up for success.

Canada recession conclusion

I hope you found this Canada recession Brandon’s Blog interesting. Among the many problems that can arise from having too much debt, you may also find yourself in a situation where bankruptcy seems like a realistic option.

If you are dealing with substantial debt challenges and are concerned that bankruptcy may be your only option, call me. I can provide you with debt help.

You are not to blame for your current situation. You have only been taught the old ways of dealing with financial issues, which are no longer effective.

We’re passionate about permanently solving your financial problems with you and getting you or your company out of debt. We offer innovative services and alternatives, and we’ll work with you to develop a personalized preparation for becoming debt-free which does not include bankruptcy. We are committed to helping everyone obtain the relief they need and are worthy of.

You are under a lot of pressure. We understand how uncomfortable you are. We will assess your entire situation and develop a new, custom approach that is tailored to you and your specific financial and emotional problems. We will take the burden off of your shoulders and clear away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We realize that people and businesses in financial difficulty need a workable solution. The Ira Smith Team knows that not everyone has to file for bankruptcy in Canada. Most of our clients never do, as we are familiar with alternatives to bankruptcy. We assist many people in finding the relief they need.

Call or email us. We can tailor a new debt restructuring procedure specifically for you, based on your unique economic situation and needs. If any of this sounds familiar to you and you’re serious about finding a solution, let us know.

Call us now for a no-cost consultation.

Brandon Blog Post

IS CANADA IN RECESSION? MOST CANADIANS SAY YES TO AN INTENSE RECESSION

Post author By Brandon Smith
Post date June 27, 2022

Is Canada in recession?

Statistics Canada recently released data showing that inflation rose to 7.7% year-on-year in May, up from 6.8% in April. This was the highest reading since January 1983 and well above the 7.3% expected by economists. The inflation index rose 1.4% from the previous month, with gasoline prices, hotel prices and car prices being the main reasons for the rise in May.

Many economists believe core measures are a better indicator of underlying price pressures, as it excludes food and energy costs. The recent average of this measurement, according to Statistics Canada, increased to 4.73% which is the highest level in the last 32 years! The worst news, their inflation expectations are not stopping.

In this Brandon’s Blog, I discuss is Canada in recession and look at what effect it might have on Canadians.

Is Canada in recession? What is a recession?

In the most basic terms, a recession is not only when economic growth is curtailed but is a period of economic decline marked by a contraction in economic activity. Most governments define a recession as two straight quarters in which the economy contracts by at least 1.5 percent. Economists define it as negative gross domestic product (GDP) growth. This definition doesn’t take into account consumer sentiment, but that’s an important metric to pay attention to since it affects consumer spending.

Fears of a recession have been rising in recent weeks as central banks around the world try to bring inflation down from the highest in decades by raising interest rates quickly. A new poll finds that nearly 8 in 10 Canadians believe the Canadian economy is in or near a recession. More than half of those Canadians are starting to cut back on spending to cope with the recession.

According to a recent survey of 1,517 Canadians by Yahoo and pollster Maru Public Opinion, a whopping 78 percent of respondents believe Canada is now in a recession or approaching a recession. Of those, 23% believe Canada will enter a recession within the next three months, while as many as 55% believe the Canadian economy is now in a recession.

is canada in recession

Is Canada in recession right now? What the economists say

Canadian economists were surveyed by Finder on their inflation and economic recession expectations. Most said Canada has recession risk and is heading for a recession. They say we can expect it to happen anytime between 2023 and the first half of 2024. Most thought it would happen in the first six months of 2023, another quarter thought it would take a year to manifest. Economists have pointed to the pandemic, inflation and interest rate hikes as the reasons for the recession in Canada (isn’t the hot money only flowing into the housing market the reason for the recession?).

Finder explains how economists try to time recessions. Canada is headed for a normal summer as pandemic restrictions are lifted, but a new variant of the COVID-19 pandemic could emerge in the fall that could tip us into a Canadian recession by this time next year. What they cannot tell us is whether it will be a mild recession or a deep recession.

Why Is Canada likely to experience a recession?

In a single word – inflation. Inflation is rising and our federal government is doing nothing to quell the inflation expectations. This is causing the Bank of Canada to try to tame inflation by raising interest rates. This increases the risk of a recession. In fact, many economists told Finder they expect “aggressive” rate hikes in the coming year. Most of those polled believe there will be at least four more rate hikes this year.

Fears of a recession have been rising in recent weeks as central banks around the world try to bring inflation down from the highest in decades by raising interest rates quickly. The Bank of Canada is one of the central banks trying to restore soaring inflation to its target range of 1% to 3%. On June 1, the Bank of Canada announced a rate hike of 0.5%.

The timing of the recession is not easy to grasp, and much depends on what happens with Russia’s invading Ukraine. Murshed Chowdhury, an associate professor at the University of New Brunswick, expects the recession to continue into the first half of 2024. How long the supply-side problems will last and the escalation of the Russian-Ukrainian war will play a big role in deciding how things turn out.

The rise in prices causing inflation can be attributed to a number of factors, including poor fiscal management by the federal government. Other factors include record highs in commodity prices such as oil and wheat. Unfortunately, wage growth for most Canadians has not kept pace with inflation. Wages have risen 2.7% over the past two years, compared with inflation of 3.4% over the same period.

is canada in recession

Is Canada in recession? What will happen to the economy of Canada?

Consumer prices in Canada accelerated to their highest level in 40 years, Bloomberg reported, adding pressure on the Bank of Canada to continue aggressively raising interest rates in the coming weeks.

Markets are almost entirely confident that the Bank of Canada will raise interest rates by 75 basis points next month, which will lift its policy rate to 2.25%. The rate is expected to be as high as 3.50% by the end of the year. The preferential loan interest rate offered by commercial banks is usually more than 2 percentage points higher than the policy interest rate.

Prime Minister Justin Trudeau’s government has also come under pressure from opposition parties and economists to do more to contain inflationary pressures and help households offset the cost of living, though the Trudeau government has been wary of any new measures.

Like other countries, Canadian households have been hit by record gasoline prices and soaring food prices. After a slight pullback in April, gasoline prices surged again in May, rising 12% for the month and 48% from a year earlier. Food prices rose by a smaller 0.8% in May but were up 8.8% from a year earlier.

Given that gasoline prices rose further in June, the 7.7% annual figure may not even be representative of the peak annual price increase. There were more signs that imported inflation was affecting domestic prices, with the cost of services rising 5.2 percent from a year earlier, the fastest pace of growth since 1991.

The cost of living is rising twice as fast as the average Canadian wage, creating significant headwinds for the economy. Unfortunately, the Canadian government and the Bank of Canada are treating this as if inflation is all caused by domestic factors when it is really global. Raising interest rates aggressively, an old tool, cannot solve a globally induced imported inflation spike.

The inflation we are experiencing now is a result of all the shocks to the Canadian economy: COVID-19, monetary policy-induced recession factors when the Bank of Canada kept interest rates at their lowest ever levels during the COVID-19 pandemic, the supply side problems because every major world economy effectively shut down for the better part of 2 years, the war in Ukraine causing shortages and therefore price spikes. None of it is a Made In Canada problem, yet the Bank of Canada and the federal government are treating it as if it was homegrown.

Is Canada in recession? What happens if we experience a recession?

Canadians’ purchasing behaviour is already beginning to change. A poll conducted by Nanos Research for Bloomberg News indicates:

52% of Canadians surveyed say they have adjusted their spending habits, set stricter priorities and started consciously spending less in the past month.
The majority of Canadians expressed concern about the state of the economy, with 62 percent of Canadians believing that the Canadian economy was on the wrong track.
Rising prices have led 32 percent of Canadians to believe they are in a worse financial position than they were the previous month. Only 8 percent of Canadians said their situation had improved.
Regionally, the poll showed that residents of Atlantic Canada and Western Canada are particularly concerned about the economy.
In the Atlantic region, 75% of respondents believe the Canadian economy is heading in the wrong direction; in Manitoba and Saskatchewan, 77%; in Alberta, 66% of people hold this view.
41 percent of Canadians said they were in a worse financial position today than they were last year. This is the second-highest reading since 2008.

This consumer sentiment, runaway inflation and the Bank of Canada and the federal government using old tools to fix a new problem will have negative consequences for Canadian businesses. Consumer spending which previously fueled the Canadian economy, now reduced consumer spending, this will most likely place is Canada in recession.

Lower company sales will lead to job losses and our record low unemployment rate will increase possibly to a new high when the current job market changes for the worst during a recession. Business investment will be reduced and what investment is made, will be more in systems and technology than people. There will be a resultant drop in GDP. Certain asset categories will drop dramatically in price as capital flees places like the Canadian stock market for investments seen to be safer.

is canada in recession

Is Canada in recession? How to protect yourself from a recession

Our spending and investing habits directly impact the economy. This year so far, it’s been a rough ride. However, the majority of how a recession affects us is within each of our own control. The rest of it, the minority is because of forces beyond our control.

The economy will vary from year to year. Our spending, saving and investing habits directly impact the economy. It is important for all of us to make smart financial decisions now so we can weather the storm when the economy dips. Is Canada in recession? Based on the above, not right now, but, it could be soon. Here are my tips on how to protect yourself from a recession.

It’s important to have an emergency fund

When a recession hits, you can get fired and the value of your investments can plummet. One of the best ways to protect yourself from financial distress or additional debt is to increase your emergency savings.

That way, even if there are unexpected expenses, or your income is affected, you’ll have a cushion to protect yourself and your family. I always recommend having an emergency fund that allows you to survive for a 6-month period.

Boost your employment prospects

When a recession hits, job security can be at risk. To safeguard your income, you should consider finding a side hustle in addition to your regular job. This can serve two key purposes—helping you grow your emergency fund and providing you with extra income.

You should focus on developing job skills that will help improve your chances of not being laid off. Time management, communication, and attention to detail are all important skills to focus on.

Budgeting

Look at your family household expenses. Cut back on anything that is not necessary spending. If necessary, use cash to pay for purchases and not a credit card. We tend to spend less when we have to count it out in cash rather than tapping or swiping a card.

That way your money will go much further. Remember, during a recession, cash is king!

Pay down debt

Do everything you can to pay down your debt before a recession hits. The more debt you have, the more of your money goes to interest payments. If you have variable rate loan debt, as the Bank of Canada continues to crank up interest rates, the cost of that debt increases.

If you have fixed-rate debt and it comes up for renewal time, say like your house mortgage, you will be forced to renew at a higher interest rate. So, by paying down debt, you are insulating yourself as best as possible against the negative effects of the recession on your outstanding debt.

The economy may or may not slip into a recession but based on what the economists believe, more likely than not, eventually, it will. Recessions can last for a long time, or they can end quickly. However, the more prepared you are, the lower your chances of suffering a prolonged financial shock in the aftermath.

You may also want to read 2 other Brandon’s Blogs:

IS CANADA IN A RECESSION: OUR 9 EASY STEPS TO SOLVE COVID-19 INDUCED FINANCIAL PROBLEMS

CANADA IN RECESSION: WILL THE ECONOMY FALL INTO A GREAT DEPRESSION?

Is Canada in recession? What if your debt is too much for you?

I hope you found this is Canada in recession Brandon’s Blog interesting. Among the many problems that can arise from having too much debt, you may also find yourself in a situation where bankruptcy seems like a realistic option.

If you are dealing with substantial debt challenges and are concerned that bankruptcy may be your only option, call me. I can provide you with debt help.

You are not to blame for your current situation. You have only been taught the old ways of dealing with financial issues, which are no longer effective.

Call us now for a no-cost consultation.

Brandon Blog Post

IS CANADA IN A RECESSION: OUR 9 EASY STEPS TO SOLVE COVID-19 INDUCED FINANCIAL PROBLEMS

Post author By Brandon Smith
Post date August 24, 2020

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

If you would prefer to listen to the audio version of this is Canada in a recession Brandon’s Blog, please scroll to the very bottom and click on the podcast.

Is Canada in a recession introduction

One question that people are searching online for answers is: Is Canada in a recession? Last month I wrote a blog titled Canada in recession: Will the economy fall into a great depression? In that blog, I described the views of Nouriel Roubini is a world-known economist and a professor of economics at New York University’s Stern School of Business. He has some stark current thoughts on just how bad the Canadian economy can go. I invite you to again read that blog to see what his thoughts are.

That blog accepted the signals that Canada is in a recession. The purpose of this Brandon’s Blog is to take a step back and answer the question: Is Canada in a recession?

Is Canada in a recession? What is a recession?

To begin to answer is Canada in a recession, we first need to understand what a recession is.

A recession is a short-term period of overall economic decline. Economies go via cycles, which implies there are periods of growth as well as durations of decline. The COVID-19 pandemic has actually thrust our economic climate into a decrease, a lot like just how a considerable, unanticipated expense can upend your own household budget plan.

The federal government identifies when our economy has actually entered a recession and when it has left by measuring key economic signals. These signs are sensitive to what happens locally and internationally. They include, for circumstances, declines in various industry sectors, agriculture or manufacturing, and also disruptions to international trade.

The C.D. Howe council defines a recession as a pronounced, persistent, and pervasive decline in total economic activity. It considers both GDP and employment as its major rulers. Is Canada in a recession? It stated that Canada is formally in an economic crisis and recession.

What did some economists forecast about is Canada in a recession

Economists were checking out financial indicators of the health of the Canadian economy near the end of 2019 and very early in 2020 to try and forecast the future. So, what were economists saying about is Canada in a recession?

What some economic experts were predicting prior to the coronavirus pandemic was that they really did not assume we would see one this year. However, on the other hand, last October David Rosenberg, chief economist at Gluskin Sheff & Associates, assumed there would certainly be an 80% chance of an economic downturn coming to Canada this year.

The complete level of its economic impact will certainly not be known for some time. It seems clear to economists that the United States will certainly go into an economic downturn in 2020 if it hasn’t already. Since 1970, Canada has experienced economic crises at roughly the very same time as the USA, showing the interconnectedness of the two economies. So it appears that all of North America is in a recession.

How bad will Canada’s COVID-19 recession be?

Canada is only now seeing the tip of the economic iceberg from COVID-19. It is clear that its economic effect will be like nothing seen since the Great Depression. Economists state the overview for employment and the economic climate will be stark. The only silver lining may be that the deepness and suddenness of the decrease might offer hope for a fast rebound.

As I previously reported, Dr. Roubini thinks there are pressures that not only would make is Canada in a recession, but it could go into a depression! His view is that there is going to be a U-shape recuperation due to the fact that this is an international shock. Both households and businesses will need to invest less and save more. Precautionary savings are most likely to go higher. Income is most likely to be lower. This will convert into much less business capital spending. He claims there will certainly be a worldwide investment slump due to a global savings excess.

**How long will this is Canada in a recession last?**

The rapid spread of coronavirus led to unprecedented personal, the social, and economic impact that caught the world largely unprepared. Although the government of Canada responded decisively with programs and grants to lessen the economic devastation, the recovery period remains to be seen. And by most indicators, this downturn is looking like a long and steep uphill climb.

If we’re looking specifically at negative growth, then economists anticipate that this trend won’t continue for long. There are 2 reasons:

Lockdown mandated by the government. Whatever was closed down by government mandate which takes place much faster than a shutdown due to economic issues.
Government bailouts. The government is supporting the whole economy. Yes, we’ll need to pay back the government in taxes eventually yet that can only occur when the economy is recovering. This suggests that economic growth will certainly be slower.

Parliament budget officer Yves Giroux believes that the Canadian deficit this year will strike $256 billion, consisting of a 6.8% decline in economic development, the most awful showing since the 1981-1982 economic recession.

Is Canada in a recession? Are there any predictors of a recession recovery?

Indicators like stagnant salaries, low home financial savings, as well as high consumer financial debt, don’t predict economic crises, yet they do forecast just how challenging the healing will be when an economic downturn hits. Below are some signs and symptoms that can indicate a recession:

the surge in joblessness;
an increase in bankruptcies;
defaults or repossessions;
the falling rate of interest;
reduced consumer spending;
decreased consumer confidence; and
falling asset prices.

A healthy and balanced labour market as well as a turnaround in the housing sector helped the Canadian economy expand at a modest rate in 2019. This supports the contention that in order to come out of an economic downturn, companies and consumers need to feel confident to invest and spend.

What can you do when is Canada in a recession

If you believe the answer to the question is Canada in a recession is yes, after that there are several things that you can do. I have written on these problems before under several headings such as financial literacy, household debt and the benefits of having an emergency savings fund on hand in case of, well, an emergency situation.

You can’t regulate the country’s economic climate, yet you can control your very own. Every person requires to take a look at:

Using this time to examine your overall household budget and figure out some practical yet difficult goals for your cash.
This is the time to live according to your emergency situation budget and look at what your typical spending plan will certainly resemble once you are back to work.
Consider your typical budget based upon what it looked like before COVID-19 hit and the insights you’ve gotten around your spending behaviours since you’re living more frugally.
Making a plan to eliminate credit card debt. Try to find a no or extremely reduced rate of interest balance transfer charge card to transfer the balance to if you have some credit card financial debt lingering around.
A strategy to include a savings element in your family budget will aid to shield you when you face a reduction or a full loss of your earnings.
Dealing with the pandemic as a wake-up call to recession-proof your funds. If your income was impacted by the pandemic, what length of time could you have survived had the government, banks and other financial institutions and different corporations not actioned in with procedures to get cash back into your wallet through deferrals?
Can you work at a couple of jobs that amount to providing you with a full-time revenue? This might first take some efficient networking before you can discover the appropriate mix of work.
Have an emergency fund all set up. It will go a long way to helping you weather a recession.
No matter your current scenario, the very best way to recession-proof you and your family is with an emergency savings account.

In the post-COVID years, there is a likelihood that lenders will be stingier with exactly how much cash they loan to customers. So guarantee that your budget permits constant debt repayment when you resume a stable income that resembles your pre-coronavirus income level.

That is exactly why it is crucial to focus on your financial situation now and take steps to guarantee your long-term personal financial stability.

Is Canada in a recession summary

It certainly feels that way. I hope you found this is Canada in a recession Brandon’s Blog informative. The Ira Smith Team family hopes that you and your family members are remaining secure, healthy and well-balanced. Our hearts go out to every person that has been affected either via misfortune or inconvenience.

We all must help each other to stop the spread of the coronavirus. Social distancing and self-quarantining are sacrifices that are not optional. Families are literally separated from each other. We look forward to the time when life can return to something near to typical and we can all be together once again.

Ira Smith Trustee & Receiver Inc. has constantly used clean, safe and secure ways in our professional firm and we continue to do so.

Income, revenue and cash flow shortages are critical issues facing entrepreneurs, their companies and individual Canadians. This is especially true these days.

If anyone needs our assistance for debt relief Canada COVID-19, or you just need some answers for questions that are bothering you, feel confident that Ira or Brandon can still assist you. Telephone consultations and/or virtual conferences are readily available for anyone feeling the need to discuss their personal or company situation.

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

Tags bankruptcies, budget, building an emergency savings fund, Canada, Canadian economy, coronavirus, covid-19, economy, emergency savings fund, family household budget, financial literacy, household budget, how bad will canada's covid-19 recession be, how long will this recession last, Ira Smith Trustee, is canada in a recession, recession

Brandon Blog Post

CORONAVIRUS RISKS INCLUDE THE CANADIAN ECONOMY

Post author By Brandon Smith
Post date March 9, 2020

If you prefer to listen to an audio version of this Brandon’s Blog, please scroll to the bottom of this page and click on the podcast.

Coronavirus risks introduction

The COVID-19 is spreading out across the world. The unique coronavirus is becoming an international pandemic. COVID-19 is the breathing illness triggered by the novel coronavirus that came from Wuhan, China. The fast-spreading infection has actually killed more than 3,000 people as well as hitting at least 90,000, so far mostly in China. The disease is coming to North America right now in airports and on cruise liners. This Brandon’s Blog is to talk about the coronavirus risks and discuss why Canadians and the Canadian economy is not immune.

Coronavirus explained

Coronavirus is spread out primarily via tiny droplets coughed or sneezed straight from a contaminated individual right into the face of a person close by. The spreading is different than the more infectious air-borne transmission of the virus-like measles, which can stay suspended in enclosed areas and be taken in hours after being exhaled by ill people.

Surgical face masks do not offer a proper seal around the face so while it does secure from respiratory system droplets from a sneeze or a cough, the microbe is still present in airborne droplets that can navigate out of a medical mask. The spread of the illness is proceeding and Canadians are appropriately asking themselves how they can get security against the infection. Children who obtain the infection frequently show light symptoms and some have none. The reported cases of major illness, as well as death up until now, are in adults.

Coronavirus prevention needs a global response

Coronavirus has demanded a global public health reaction. Countries are putting out daily updates on coronavirus dangers. Strains of a brand-new infection are spreading out. We do not yet know how to deal with the brand-new germ, and we won’t know till more information can be found by the experts. An additional vital unknown is exactly how infectious the coronavirus is.

The Globe and Mail report states that the coronavirus is circling around the planet and showing the dangers of the globalization design. The ailment is creating a great deal of anguish around the world. This pathogen is a little bit of a strange illness since it’s not assaulting youngsters. Up until now, at least 95,000 persons have actually acquired the disease, with about 3,300 having passed away from it. The deaths have been up until now mainly in China. But right here is a less-recognized reality. The incubation period of this coronavirus is generally under two weeks, yet certain reports suggest it often can take 3 weeks.

Coronavirus has actually infected greater than 80 countries. After starting in China, this illness is currently spreading out quickly around the world. The introduction of a novel coronavirus has actually clearly demonstrated the coronavirus risks and the need for clear, timely, and verifiable details from reliable sources.

A look at just how prevalent this pandemic is can be shown by various stories like:

The variety of people who have tested positive in New York state for the unique coronavirus has increased to 22 after a substantial boost in screening, Governor Andrew Cuomo has actually said.
Florida authorities reported that two people that tested positive for the brand-new coronavirus have passed away.
South Africa’s news that an instance of coronavirus has been validated in the nation makes it the 3rd sub-Saharan country to report the infection.
The United States has asked Iran to release all Americans from its prisons on clinical furloughs over anxieties the coronavirus might be infesting the country’s prisons.
Paramedics in protective clothing and Israelis putting on masks and medical gloves stand near a dedicated polling station where people under quarantine from the coronavirus can vote in Israel’s nationwide political election, in Tel Aviv.
The results of the coronavirus can be seen in Tokyo.
A second person in England that tested positive for coronavirus has died, the UK’s Chief Medical Officer verified.
California Gov. Gavin Newsom said the cruise liner Grand Princess would continue to be kept offshore until travellers and crew experiencing signs and symptoms that may follow the coronavirus can be tested to figure out whether they have it.
Individuals wait outside the new medical exam department on the grounds of the Charite University Hospital campus Virchow in Berlin, where people seeking help from the coronavirus can be checked.
Iran claimed the coronavirus has caused the death of 124 individuals amid 4,747 validated cases in the Islamic Republic as authorities cautioned they might use force to limit travelling between cities.

Coronavirus information – Canada

Coronavirus in Canada does run the risk of becoming a pandemic if the rate of community spread contracting the virus without entering contact with somebody from an infected region significantly rises. The coronavirus has thus far had health consequences for a fairly small number of Canadians. There are thus far 57 validated cases in Canada, many involving people that have actually recovered. This number changes daily.

Mostly all of the destinations Canadians usually take a trip to are extremely secure. The government of Canada’s advisories currently impacts just a few of the destinations.

Obviously China, along with:

Hong Kong
Iran
Japan
North Italy
Singapore
South Korea

Canadian experts believe age, as well as health background, might play the biggest roles in identifying how the unique coronavirus can affect an individual. Local transmission of the coronavirus in Canada is so far person-to-person spread within areas in Canada.

Covid-19 and the Canadian economy

The Canadian economy will certainly be negatively influenced by this infection, similar to all other world economic climates. International Monetary Fund stated the international financial expectation has actually changed to even a more dire situation. The coronavirus has actually enhanced the risk of a worldwide recession this year, credit rating firm Moodys stated. It looks likely that the coronavirus will do significant economic damage.

The coronavirus will lead global economies into its first contraction in a decade, some economic experts are warning. Coronavirus is currently requiring companies to put on hold manufacturing in and shipments from China as officials attempt to restrict its spread. At the same time, the IMF claimed the spread of the coronavirus has actually erased assumptions of stronger financial growth this year. It will cause the 2020 worldwide economic gains to its slowest pace since the economic crisis in 2008.

With monetary markets uneasy, the United States Fed’s change of mind on decreasing interest rates is totally reasonable. The coronavirus risks have brought about a dramatic downturn in the stock market. It has fanned worries of financial tanking as the Republican president asks Americans for a second term. As it worries the US economy, the Canadian economy follows the same path.

The coronavirus will injure Canada’s economy. The rapid spread of the coronavirus is most likely to send the global economy right into a downturn, according to prominent Canadian economist David Rosenberg. Bank of Canada Governor Stephen Poloz said in his newest speech that coronavirus will certainly interrupt the global economy for at the very least the first half of this year. The half a point decrease of the Bank’s key rate target to 1.25 percent marked the initial cut since the summer of 2015 and brought the rate to its lowest level since early 2018.

On March 5, Prime Minister Justin Trudeau said a pavlovian response to the unique coronavirus will not keep Canadians safe. The federal government is attempting to stop an economic downturn from something they cannot manage; the coronavirus that’s going to affect the whole world’s economy. Financial experts think the Bank of Canada’s decision to reduce the target interest rate shows the coronavirus has revealed a pocket of weakness in the Canadian economy. Markets have actually withstood roller-coaster ups as well as downs for weeks amid unpredictability over how much damage the outbreak of the new coronavirus will do to the global economy.

New data on China suggests the damage coronavirus has actually wrought on the globe’s second-largest economic engine could be even worse and a lot more extended than previously anticipated. My fear is the Canadian reaction will be insufficient to mitigate the negative financial influence the coronavirus is having on worldwide financial markets. The best-case scenario is that the Bank of Canada’s emergency rate cut will prove to be an over-reaction from the policymakers.

The coronavirus is now beginning to have a devastating influence on world markets, manufacturing and supply chains. It will eventually impact the labour force. Investors are really hoping that policymakers will take crucial action to limit the pain. If reduced business causes layoffs in Canada and elsewhere, the economy will slow down even faster.

Coronavirus is damaging the international airline and hotel sectors as business and leisure trips are being cancelled. Economists are asking whether lowering interest rates is the correct way to counter the negative economic influence from the coronavirus. The SEC is concerned about what the effect will be on new issuers and investors.

Coronavirus may force the Alberta government to ditch a balanced-budget plan, said Premier Jason Kenney. In the United States, economists are urging the President to right away rescind all of his tariffs and also dedicate to markets and as trading partners that no brand-new tariffs will be applied at least until the economic damage from the coronavirus has passed. Markets will continue to be volatile until the coronavirus is brought under control. Canadians are really concerned that the coronavirus has the potential to erase the value of their retirement funds.

The coronavirus is negatively impacting supply chain systems causing failures to deliver. Companies might get some protection if the force majeure section of supply contracts mentions that an epidemic or disease is an event beyond the parties’ control. The coronavirus may fall within that interpretation. In all instances, company problems will take months to return to business as usual. So even if the coronavirus is contained quickly, it is likely to negatively affect the economy for some time.

Coronavirus has forced travelling constraints, allegations between governments and a collection of misguided xenophobic attacks in many countries. Relying on the degree of human and financial damage this virus brings upon around the world, coronavirus may someday be considered a vital turning point for the whole global economy.

Just a few examples of economic damage that the coronavirus has already brought about are:

postponement of the three-day Ultra electronic dance music festival in Miami
the release of the next James Bond film delayed from April to November 2020
IBM cancelling a major event
the NBA announcing it is seriously studying the situation and playing games in empty arenas is a possibility under consideration. The television contract is so lucrative and attracts such a wide audience, allows for empty stadium games to be a serious possibility
Cancellation of business and vacation travel

The concern of whether it is appropriate to cancel or alter travel plans due to the spread of the coronavirus is mainly an individual decision that travellers have to make after evaluating all the realities available. No matter, Canadian life and the economic climate will certainly be various for the foreseeable future.

Summary

I hope you have found this coronavirus risks discussion useful. If you have any questions please feel free to contact us at any time.

Do you or your company have excessive debt and looking for debt restructuring? Is your business in trouble because of the effects of coronavirus on the Canadian economy? Would not it be great if you could do a turn-around?

The Ira Smith Team understands how to do a debt restructuring. More notably, we comprehend the requirements of the business owner or the person who has too much individual debt. Because you are dealing with these stressful financial issues, you are anxious.

It is not your fault you can’t fix this problem on your own. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

We understand that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will get you or your business back on the roadway to healthy and balanced worry-free operations and end the pain points in your life, Starting Over, Starting Now.

Tags Canadian economy, coronavirus explained, coronavirus information, coronavirus prevention, coronavirus protection, coronavirus risks, covid-19, economy, global economy, globe and mail, governor stephen poloz, governor stephen poloz speech, Ira Smith Trustee, justin trudeau, pandemic, stephen poloz, virus

Brandon Blog Post

#VIDEO: AVERAGE STUDENT LOAN DEBT: REASONS WHY WE PITY YOU#

Post author By Brandon Smith
Post date December 23, 2015

The rise of average student loan debt

<<average -student-loan-debt

Average student loan debt is getting out of control. Post-secondary education is effectively a need for today’s labour market. According to the Canadian Federation of Students in its paper titled: “The Impact of Student Debt”, unfortunately, since the demand for education has inflated, public funding did not keep up. Public funding shortfalls have resulted in the increased cost of post-secondary education being borne by students.

The growth in average tuition fees

From 1990 to 2014, the national average tuition fees have seen an inflation adjusted increase of over one hundred and fifty per cent (150%). In Ontario, tuition fees have grown over one hundred and eighty percent (180%). For most students—often having spent very little time active within the workforce, other than for part-time work—funding their education has become more and more troublesome.

Students now taking on higher levels of average student loan debt

Many students are now taking on increased levels of debt for their education. Students requiring a Canada Student Loan currently graduate with an average student loan debt of over $28,000. Keep in mind that this is an average, with the costs of graduate education resulting in higher debt levels. Relying on debt to finance education suggests that there is a delay in the full impact of high tuition fees till after graduation—when interest begins to be charged.

Societal issues caused by rising average student loan debt statistics

This impact is now exacerbated by the effects of the most recent recession and the rising trend of precarious, and even unpaid, employment. The broader effects of high levels of student debt on both the person and the general economy are now resulting in various issues:

Young Canadians (15-24) accounted for over half of job losses over the last 5 years;
Un and under-employment can cost the Canadian economy over $22 billion by 2031;
In 2014, youth un and under-employment was twenty-seven per cent (27%);
Thirty per cent (30%) of medical students expect to graduate with over $100,000 in student debt;
Under-employment and work outside one’s field of study results in talent degradation, falling behind in ability, and lost networking opportunities;
Canada has seen a fifteen per cent (15%) growth in Canadians under the age of 30 who still live in their parent’s home since 1981;
Those with student debt have a fewer assets, savings or investments compared to debt-free peers.

Average student loan debt causes affect the Canadian economy

Starting out with huge debt and facing a weak labour market, this prevents graduates to fully take part within the Canadian economy. Student debt impacts career selections, even among professional school graduates in medicine and law. An estimate of unpaid internships is in the range of 300,000 graduates working with no pay.

Do you have too much debt? Then contact us now

If you are an individual or company who needs to free themselves from the stress and strain of too much debt, and especially if you have been told your situation is hopeless, Ira Smith Trustee & Receiver Inc. can prepare and carry out the plan made just for you, to free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.

Student loan debt has its own set of unique rules and complexities within the Canadian insolvency scheme. If you’re experiencing serious debt issues, contact a professional trustee for a free, no obligation consultation. The Ira Smith Team does not try to write new insolvency law or tax law. Rather, we will evaluate your situation within the existing statutes, and help you to arrive at the best possible solution for your problems, whether that solution is a bankruptcy alternative like credit counselling, debt consolidation or a consumer proposal or bankruptcy. Starting Over, Starting Now you can be debt free with the help of a professional, licensed trustee in bankruptcy. Contact us today.

Brandon Blog Post

CANADIAN HOUSEHOLD DEBT: WE SEEM TO LOVE IT!

Post author By Brandon Smith
Post date October 5, 2015

Canadian household debt at a record high

The ratio of Canadian household debt to disposable income has hit a record high of 164.6%. This means for every $1 of after tax income Canadians earned, they owed nearly $1.65 in credit market debt – mortgages, credit cards and other kinds of consumer loans. The reality is that many Canadians are living in a financial danger zone. They’re walking a financial tightrope where anything like the loss of a job or an increase in interest rates can throw off this delicate balance and plunge them into financial disaster.

Increase is no surprise

TD Bank economist Jonathan Bendiner wrote about Canadian household debt, “The increase came as no surprise. Rising mortgage debt drove most of the growth as interest rate cuts by the Bank of Canada earlier in the year spurred borrowing, especially in the hot housing markets in British Columbia with all the homes for sale in Mission BC and Ontario”. The great concern now is what happens once interest rates rise to more typical levels. How many Canadian will no longer be able to pay their bills or carry their household debt?

5 reasons why for the increase in Canadian household debt

Why is Canadian household debt at an all time high? In addition to rising mortgage debt it may come down to one simple word – lifestyle:

Credit card spending rose by 8% this year (Moneris Solutions Corp.)
Spending on restaurants and fast food rose by more than 12% (Moneris Solutions Corp.)
Home improvement spending soared nearly 10% in the second quarter of the year compared with the same time last year, led by sales of glass, paint, wallpaper and flooring (Moneris Solutions Corp.)
Furniture sales are up more than 17% (Moneris Solutions Corp.)
Auto loans rose nearly 4% in the second quarter on the back of record vehicle sales (Equifax)

Has income kept pace with Canadian household debt? No!

Unfortunately incomes haven’t increased in the Canadian economy to compensate for the increase in spending and Canadian household debt. A Bank of Montreal report states that approximately 80% of Canadians are in debt and nearly 66% would have trouble affording their household debt if interest rates went up by just two percentage points. Canadians now spend an average 14% of after tax income on their debts. Sadly, the group that’s struggling the most is seniors. According to Equifax, for the first time in five years, 90-day delinquency rates rose among seniors in the second quarter.

What is a person to do?

Are you walking a financial tightrope? If interest rates rise will you be able to afford your household debt? Better yet, would you know how to pay off debt?

Don’t wait for disaster to strike! The time for professional help is NOW. Contact Ira Smith Trustee & Receiver Inc. We’re experts in debt and debt management. We approach every file with the attitude that corporate or personal financial problems can be solved given immediate action and the right plan. Starting Over, Starting Now we can give you financial peace of mind.

Tags auto loans, Canadian debt, Canadian economy, Canadian household debt, credit card, credit card spending, Debt, Equifax, financial danger zone, household debt, how to pay off debt, interest rates, lifestyle, Moneris Solutions, mortgage debt, seniors, trustee

Bank of Canada interest rate: Introduction

Overview of Bank of Canada

Some history and definitions of the Bank of Canada’s interest rates

Understanding the purpose of Bank of Canada interest rate policy

Explanation of what the Bank of Canada interest rate is

Factors influencing changes in the Bank of Canada interest rate

The process of setting and adjusting the Bank of Canada interest rate

Bank of Canada interest rate effect on consumers

Impact of interest rate changes on borrowing costs (mortgages, loans, credit cards)

Influence on consumer spending and saving habits

Effects on the housing market and affordability

The overall effect on Canadians

Bank of Canada interest rate: Effect on businesses

Influence on borrowing costs for businesses

Effects on employment and wages

Implications for business growth and economic stability

Relationship between interest rates and economic growth

Influence on inflation and consumer prices

Implications for monetary policy and government regulations

Strategies for Consumers and Businesses

Tips and advice for consumers managing finances in a changing interest rate environment

Recommended strategies for businesses to navigate fluctuating interest rates

Overview of available tools and resources to understand and plan for interest rate changes

Bank of Canada interest rate policy: Summary

Mortgage issues: Introduction

The impact of rising interest rates on mortgage and other debt payments

Understanding Household Debt in Canada

Canadians expect signs of trouble in the Canadian economy

Principal reasons for mortgage issues in Canada

Consequences of mortgage issues in Canada

Coping with household debt and mortgage Issues: What Can Homeowners Do?

Mortgage issues: Conclusion

Canada recession: Can you operate a business if there is a recession in Canada?

How must business owners respond to a Canada recession?

How to financially prepare my business for a Canada recession

Canada recession financing

Canada recession: Sell ​​shrewdly

Canada recession: Ongoing competitive analysis

Canada recession: Start small…with a plan to expand

Canada recession: Leverage technology to your advantage

Canada recession: Your network

Canada recession cost reduction ideas

Canada recession key takeaways

Canada recession conclusion

Is Canada in recession?

Is Canada in recession? What is a recession?

Is Canada in recession right now? What the economists say

Why Is Canada likely to experience a recession?

Is Canada in recession? What will happen to the economy of Canada?

Is Canada in recession? What happens if we experience a recession?

Is Canada in recession? How to protect yourself from a recession

It’s important to have an emergency fund

Boost your employment prospects

Budgeting

Pay down debt

Is Canada in recession? What if your debt is too much for you?

Is Canada in a recession? What is a recession?

What did some economists forecast about is Canada in a recession

How bad will Canada’s COVID-19 recession be?

How long will this is Canada in a recession last?

Is Canada in a recession? Are there any predictors of a recession recovery?

What can you do when is Canada in a recession

Is Canada in a recession summary

If you prefer to listen to an audio version of this Brandon’s Blog, please scroll to the bottom of this page and click on the podcast.

Coronavirus risks introduction

Coronavirus explained

Coronavirus prevention needs a global response

Coronavirus information – Canada

Covid-19 and the Canadian economy

Summary

The rise of average student loan debt

The growth in average tuition fees

Students now taking on higher levels of average student loan debt

Societal issues caused by rising average student loan debt statistics

Average student loan debt causes affect the Canadian economy

Do you have too much debt? Then contact us now

Canadian household debt at a record high

Increase is no surprise

5 reasons why for the increase in Canadian household debt

Has income kept pace with Canadian household debt? No!

Canada recession: Sell shrewdly

**How long will this is Canada in a recession last?**